LONDON (ShareCast) - (Sharecast News) - Financial services, including banks and life insurers, and oil companies led the gains on Wednesday, while tobacco stocks fell.
Traders said financials and other UK stocks were given a boost by an apparent softening in Theresa May's Brexit stance, as she sat down with Labour leader Jeremy Corbyn to apparently try and agree a Brexit deal that could be acceptable to a majority in Parliament. Cross-party talks were expected to continue on Thursday.

Oil services companies were up on the back of Brent crude futures nudging $70 a barrel.

Tobacco stocks, Imperial Brands and British American Tobacco, were down on the back of two pieces of news.

US cigarette sales volumes fell 8.8% year on year in the four weeks to March 23, according to Nielsen data cited by Morgan Stanley, following the 8% decline reported in February and a 5.3% drop last year.

Furthermore, the US Food & Drug Administration announced an investigation into vaping and the possible risk of seizures, after 35 cases were identified over the past nine years, particularly among younger users.

The FDA said it had seen a "slight but noticeable increase in reports of seizures" since last June.

"We know that nicotine isn't a harmless substance, especially in the developing brains of our youth," said FDA commissioner Scott Gottlieb and principal deputy commissioner Amy Abernethy in the statement. "But we've also been clear that, even for adults, e-cigarettes are not risk free."

Market analysts at IG said: "Of course, such an investigation is in its early stages but it provides yet another headache for a sector still fighting hard to improve its image and replace lost sources of revenue."



Top performing sectors so far today

Automobiles & Parts 6,504.99 +2.57%

Financial Services 10,576.08 +2.06%

Life Insurance 7,899.36 +1.97%

Oil Equipment, Services & Distribution 11,271.50 +1.96%

Forestry & Paper 20,179.07 +1.85%

Bottom performing sectors so far today

Tobacco 35,848.20 -2.45%

Beverages 24,656.73 -1.29%

Pharmaceuticals & Biotechnology 15,196.77 -1.17%

Electricity 7,092.10 -0.84%

Technology Hardware & Equipment 1,154.69 -0.54%

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